Online Advertising Theories

online advertising theories

Construction Advertising Companies

The need for construction advertising is probably today more than ever before because the housing market is showing no signs of improvement. There are those who are saying that the worst may be behind us, and the economy is all set to grow, but then, the signs are still not that positive. Some business people of course argue that when the economy is not doing great it might be a better idea to cut costs and reduce the spending on advertising or promotions. At least this is what the accountant would recommend.

However those who are really smart advertisers do just the opposite. Robert Kiyosaki who is famous for his “Rich Dad Poor Dad” books agrees to this theory. He says that a business, even a construction business, must be marketed even more in times of trouble. Kiyosaki feels that in bad economic times, a business should boost its promotions, and not reduce the advertising budget, as many seem to do.

Reason #1 – Why Construction Advertising Can Work In A Down-Economy

Many businesses that are into construction advertising reduce their marketing budget when the economy is not booming, and this offers you a great opportunity. The fact is, when everyone is advertising, there is far too much to pay attention to one. There is so much advertising that your advertisement is sure to be lost in the maze if that is you are not spending a lot of money to buy prime time television spots everyday and full page insertions in the newspaper at least once a week.

Very Few Advertisers Can Afford To Spend This Kind Of Money.

On the other hand, when no one seems to be advertising, there are a lot of vacant positions, and so the chances are that your efforts at trying to reach your customers is bound to get noticed. Since very few advertisers are advertising, the rates are sure to go down too – you can  buy the same spots for less and save money.

Reason # 2 – Construction Advertising For Genuine Leads

Advertisers often complain that leads do not convert into customers. This is because most people are basically casual buyers. When the economy is not doing well, the number of such casual buyers or enquiries also goes down remarkably. The fact is, most people who are calling the company are actually interested. So promoting the business here can lead to better sales.

Using The Internet For Construction Advertising

The construction business can also be promoted through online advertising and in many ways this is highly beneficial. Over the last few years there has been a definite shift in the way consumers are searching. There was a time when people used to look up newspaper advertisements and yellow pages for whatever they needed. But now many of them have decided to search the Internet as it is often more convenient. This is one reason why almost all the newspapers have a website, and the Yellow Pages are today on the Web.

So In conclusion it can be said a business should never stop construction advertising, even when it seems that the economy might not be doing that great. And on top of that, it is essential for the business to explore all possible channels of marketing too for gaining maximum mileage.

About the Author

Randy Munden has one of the leading Construction Advertising Companies, online advertising to fit anyone’s needs.

How might advertising influence a firm’s market power?

I know that advertising increases market power, but I need to do a 10-15 min presentation on the question. I’ve looked for info online, but all the sites/journals I’ve read through say more or less the same thing: due to brand loyalty and product differentiation. Are there any other ways it can influence market power? I’m not asking for an entire answer, just some key points to research myself. In particular:

-Key theories/theorists in the field

-Whether effects of advertising vary due to market structure (oligopoly and monopoly in particular)

-Empirical data on advertising and market share/power

I’m considering doing a case study on Apple (brand loyalty through iPod ==> increased sale of Macs relative to PCs). Where could I find time-series data on Apple’s market share?

Thank you very much!

Advertising aims at raising brand awareness and and strengthening brand loyalty. Advertising is considered to be a sunk cost (i.e. costs that can not be recovered). Advertising is a basic characteristic in the Monopolistic Competitive industry. In Monopolistic Competition, products are similar but differentiated, hence in order for each firm to increase its market share, they advertise their products. In Monopoly, there is no need to advertise the product since there is know competition. As far as the data you want are concerned, send apple an email and ask them if they would give them to you.

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